The WAGO Group has grown for the third year in a row, achieving 1.37 billion euros in revenue in 2023. This represents 2.2 percent year-on-year revenue growth for the leading manufacturer of electrical interconnection and automation technology.
1.37 billion € revenue
9,000 employees
157 million € investments
“In view of the challenging German economic situation and slow global growth, we are very satisfied with our company’s positive development,” says CEO Dr. Heiner Lang, commenting on the 2023 balance sheet. Despite a significant economic slowdown and the associated decrease in incoming orders, revenue continued to increase. With its products, systems and solutions for electrical interconnection technology and automation, WAGO covers a wide range of market segments and applications. “The energy and mobility transition, as well as investments in factories and capacity expansions, had a positive effect on the WAGO Group’s overall revenue in 2023,” says CFO Jürgen Koopsingraven. The German market’s share in the revenue rose to 29.3 percent; Germany thus remains WAGO’s largest market. The rest of the European market accounted for another 42.9 percent of revenue and the remaining world markets for 27.8 percent. As in previous years, the electrical interconnections business accounts for the largest proportion of revenue and continues to grow. The strongest relative growth is seen in the solutions business. With a dedicated team of around 9,000 employees, the WAGO Group’s workforce is the crucial success factor for its growth. Around 4,300 of these employees work in Germany – about 1,000 of them in Sondershausen in Thuringia. Training is and will remain key for securing the supply of qualified employees, so WAGO attaches great importance to promoting young talent. At the state-of-the-art training center at the headquarters in Minden, 224 trainees and students are currently starting their careers. At present, 47 trainees and students are employed at the production and logistics facility in Sondershausen.
WAGO CEO Dr. Heiner Lang
With 157 Million Euros, WAGO Is Investing More Than Ever Before
Apart from the financial resources devoted to training facilities, WAGO invested 157 million euros last year – a large portion in expanding its production and logistics facilities. This substantial sum underlines the company’s determination to invest in the future. “We are expanding our capacities and laying the foundation for sustainable international growth,” explains CFO Jürgen Koopsingraven. Last year, 60 percent of the investments went to the plants at Minden’s headquarters and in Thuringia; construction of the new “WAVE24” logistics center in Sondershausen, Thuringia, alone accounted for 22 million euros. “This will go into operation at the end of this year. That will significantly increase product availability and improve delivery performance in line with customer expectations,” says Koopsingraven.
WAGO’s growth strategy also includes expanding its presence in Europe and investing in international markets. For instance, the company is expanding the production capacity at its Domdidier site in Switzerland, where a new plastic injection molding plant will be ready by the end of 2025. The main focus of this process is on energy-efficient production and resource conservation. The company is also investing in the new headquarters of WAGO UK & Ireland, in Houlton Rugby. The project is equipped with a state-of-the-art building management system and includes 5,900 square meters of office and production space. Construction is slated to be completed by the end of 2024.
In addition, investments are being made in production expansion and manufacturing equipment at the plants in Poland, India, China and Mexico.
Strengthening existing markets represents another strategic area of action. For example, WAGO is continuing to expand its business activities in Spain as part of its growth strategy. The merger with its long-standing local sales partner Dicomat to form WAGO Iberia in the second half of 2024 represents a clear commitment to WAGO’s customers, partners and employees in Spain and Portugal. “Expanding our international footprint and investing in markets, customers and employees are crucial for our long-term growth, helping to increasing our competitiveness and resilience,” explains CEO Dr. Heiner Lang.
WAGO CFO Jürgen Koopsingraven